TEXTRON INC, 10-Q filed on 4/29/2021
Quarterly Report
v3.21.1
Cover - shares
 3 Months Ended
Apr. 03, 2021
Apr. 16, 2021
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Apr. 03, 2021  
Document Transition Report false  
Entity File Number 1-5480  
Entity Registrant Name Textron Inc.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 05-0315468  
Entity Address, State or Province RI  
Entity Address, City or Town Providence  
Entity Address, Address Line One 40 Westminster Street  
Entity Address, Postal Zip Code 02903  
City Area Code 401  
Local Phone Number 421-2800  
Title of 12(b) Security Common stock, $0.125 par value  
Trading Symbol TXT  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   225,708,875
Entity Central Index Key 0000217346  
Current Fiscal Year End Date --01-01  
Document Fiscal Year Focus 2021  
Document Fiscal Period Focus Q1  
Amendment Flag false  
v3.21.1
Consolidated Statements of Operations (Unaudited) - USD ($)
$ in Millions
 3 Months Ended
Apr. 03, 2021
Apr. 04, 2020
Revenues    
Total revenues $ 2,879 $ 2,777
Costs, expenses and other    
Cost of sales 2,400 2,387
Selling and administrative expense 298 263
Interest expense 40 40
Special charges 6 39
Non-service components of pension and post-retirement income, net (40) (21)
Gain on business disposition (15) 0
Total costs, expenses and other 2,689 2,708
Income before income taxes 190 69
Income tax expense 19 19
Net income $ 171 $ 50
Earnings per share    
Basic (in dollars per share) $ 0.75 $ 0.22
Diluted (in dollars per share) $ 0.75 $ 0.22
Manufacturing revenues    
Revenues    
Total revenues $ 2,864 $ 2,763
Finance revenues    
Revenues    
Total revenues $ 15 $ 14
v3.21.1
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($)
$ in Millions
 3 Months Ended
Apr. 03, 2021
Apr. 04, 2020
Statement of Comprehensive Income [Abstract]    
Net income $ 171 $ 50
Other comprehensive income (loss), net of tax    
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax 30 37
Foreign currency translation adjustments, net of reclassifications (18) (40)
Deferred gains (losses) on hedge contracts, net of reclassifications 4 (9)
Other comprehensive income (loss) 16 (12)
Comprehensive income $ 187 $ 38
v3.21.1
Consolidated Balance Sheets (Unaudited) - USD ($)
shares in Thousands, $ in Millions
Apr. 03, 2021
Jan. 02, 2021
Assets    
Inventories $ 3,705 $ 3,513
Finance receivables, net 672 744
Total assets 15,414 15,443
Liabilities    
Total liabilities 9,418 9,598
Shareholders’ equity    
Common stock 29 29
Capital surplus 1,845 1,785
Treasury stock (294) (203)
Retained earnings 6,139 5,973
Accumulated other comprehensive loss (1,723) (1,739)
Total shareholders’ equity 5,996 5,845
Total liabilities and shareholders’ equity $ 15,414 $ 15,443
Common shares outstanding (in shares) 225,898 226,444
Manufacturing group    
Assets    
Cash and equivalents $ 1,897 $ 2,146
Accounts receivable, net 883 787
Inventories 3,705 3,513
Other current assets 899 950
Total current assets 7,384 7,396
Property, plant and equipment, less accumulated depreciation and amortization of $4,737 and $4,696, respectively 2,478 2,516
Goodwill 2,152 2,157
Other assets 2,468 2,436
Total assets 14,482 14,505
Liabilities    
Current portion of long-term debt 257 509
Accounts payable 1,033 776
Other current liabilities 1,833 1,985
Total current liabilities 3,123 3,270
Other liabilities 2,340 2,357
Long-term debt 3,183 3,198
Total liabilities 8,646 8,825
Finance group    
Assets    
Cash and equivalents 181 108
Finance receivables, net 672 744
Other assets 79 86
Total assets 932 938
Liabilities    
Other liabilities 119 111
Debt 653 662
Total liabilities $ 772 $ 773
v3.21.1
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)
$ in Millions
Apr. 03, 2021
Jan. 02, 2021
Statement of Financial Position [Abstract]    
Accumulated depreciation and amortization $ 4,737 $ 4,696
v3.21.1
Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Millions
 3 Months Ended
Apr. 03, 2021
Apr. 04, 2020
Cash flows from operating activities    
Net income $ 171 $ 50
Non-cash items:    
Depreciation and amortization 90 90
Gain on business disposition (15) 0
Deferred income taxes 11 (10)
Asset impairments 3 39
Other, net 35 33
Changes in assets and liabilities:    
Accounts receivable, net (103) 47
Inventories (178) (368)
Other assets (17) (41)
Accounts payable 259 (49)
Other liabilities (105) (203)
Income taxes, net (11) 20
Pension, net (23) (5)
Captive finance receivables, net 69 0
Other operating activities, net (5) 3
Net cash provided by (used in) operating activities of continuing operations 181 (394)
Net cash used in operating activities of discontinued operations 0 (1)
Net cash provided by (used in) operating activities 181 (395)
Cash flows from investing activities    
Capital expenditures (53) (50)
Net proceeds from business disposition 39 0
Finance receivables repaid 13 13
Other investing activities, net 6 (6)
Net cash provided by (used in) investing activities 5 (43)
Cash flows from financing activities    
Increase in short-term debt 0 603
Net proceeds from long-term debt 0 643
Proceeds from borrowings against corporate-owned life insurance policies 0 377
Principal payments on long-term debt and nonrecourse debt (287) (24)
Purchases of Textron common stock (91) (54)
Dividends paid (5) (5)
Other financing activities, net 24 3
Net cash provided by (used in) financing activities (359) 1,543
Effect of exchange rate changes on cash and equivalents (3) (16)
Net increase (decrease) in cash and equivalents (176) 1,089
Cash and equivalents at beginning of period 2,254 1,357
Cash and equivalents at end of period 2,078 2,446
Manufacturing group    
Cash flows from operating activities    
Net income 177 48
Non-cash items:    
Depreciation and amortization 88 89
Gain on business disposition (15) 0
Deferred income taxes 11 (11)
Asset impairments 3 39
Other, net 36 33
Changes in assets and liabilities:    
Accounts receivable, net (103) 47
Inventories (178) (368)
Other assets (17) (41)
Accounts payable 259 (49)
Other liabilities (103) (198)
Income taxes, net (23) 20
Pension, net (23) (5)
Other operating activities, net (5) 3
Net cash provided by (used in) operating activities of continuing operations 107 (393)
Net cash used in operating activities of discontinued operations 0 (1)
Net cash provided by (used in) operating activities 107 (394)
Cash flows from investing activities    
Capital expenditures (53) (50)
Net proceeds from business disposition 39 0
Finance receivables repaid 0 0
Finance receivables originated 0 0
Other investing activities, net 0 (6)
Net cash provided by (used in) investing activities (14) (56)
Cash flows from financing activities    
Increase in short-term debt 0 603
Net proceeds from long-term debt 0 643
Proceeds from borrowings against corporate-owned life insurance policies 0 377
Principal payments on long-term debt and nonrecourse debt (267) (7)
Purchases of Textron common stock (91) (54)
Dividends paid (5) (5)
Other financing activities, net 24 (9)
Net cash provided by (used in) financing activities (339) 1,548
Effect of exchange rate changes on cash and equivalents (3) (16)
Net increase (decrease) in cash and equivalents (249) 1,082
Cash and equivalents at beginning of period 2,146 1,181
Cash and equivalents at end of period 1,897 2,263
Finance group    
Cash flows from operating activities    
Net income (6) 2
Non-cash items:    
Depreciation and amortization 2 1
Gain on business disposition 0 0
Deferred income taxes 0 1
Asset impairments 0 0
Other, net (1) 0
Changes in assets and liabilities:    
Accounts receivable, net 0 0
Inventories 0 0
Other assets 0 0
Accounts payable 0 0
Other liabilities (2) (5)
Income taxes, net 12 0
Pension, net 0 0
Other operating activities, net 0 0
Net cash provided by (used in) operating activities of continuing operations 5 (1)
Net cash used in operating activities of discontinued operations 0 0
Net cash provided by (used in) operating activities 5 (1)
Cash flows from investing activities    
Capital expenditures 0 0
Net proceeds from business disposition 0 0
Finance receivables repaid 89 46
Finance receivables originated (7) (33)
Other investing activities, net 6 0
Net cash provided by (used in) investing activities 88 13
Cash flows from financing activities    
Increase in short-term debt 0 0
Net proceeds from long-term debt 0 0
Proceeds from borrowings against corporate-owned life insurance policies 0 0
Principal payments on long-term debt and nonrecourse debt (20) (17)
Purchases of Textron common stock 0 0
Dividends paid 0 0
Other financing activities, net 0 12
Net cash provided by (used in) financing activities (20) (5)
Effect of exchange rate changes on cash and equivalents 0 0
Net increase (decrease) in cash and equivalents 73 7
Cash and equivalents at beginning of period 108 176
Cash and equivalents at end of period $ 181 $ 183
v3.21.1
Basis of Presentation
 3 Months Ended
Apr. 03, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation Basis of Presentation
Our Consolidated Financial Statements include the accounts of Textron Inc. (Textron) and its majority-owned subsidiaries.  We have prepared these unaudited consolidated financial statements in accordance with accounting principles generally accepted in the U.S. for interim financial information.  Accordingly, these interim financial statements do not include all of the information and footnotes required by accounting principles generally accepted in the U.S. for complete financial statements.  The consolidated interim financial statements included in this quarterly report should be read in conjunction with the consolidated financial statements included in our Annual Report on Form 10-K for the year ended January 2, 2021.  In the opinion of management, the interim financial statements reflect all adjustments (consisting only of normal recurring adjustments) that are necessary for the fair presentation of our consolidated financial position, results of operations and cash flows for the interim periods presented. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year.
Our financings are conducted through two separate borrowing groups.  The Manufacturing group consists of Textron consolidated with its majority-owned subsidiaries that operate in the Textron Aviation, Bell, Textron Systems and Industrial segments. The Finance group, which also is the Finance segment, consists of Textron Financial Corporation and its consolidated subsidiaries. We designed this framework to enhance our borrowing power by separating the Finance group. Our Manufacturing group operations include the development, production and delivery of tangible goods and services, while our Finance group provides financial services. Due to the fundamental differences between each borrowing group’s activities, investors, rating agencies and analysts use different measures to evaluate each group’s performance.  To support those evaluations, we present balance sheet and cash flow information for each borrowing group within the Consolidated Financial Statements.  All significant intercompany transactions are eliminated from the Consolidated Financial Statements, including retail financing activities for inventory sold by our Manufacturing group and financed by our Finance group.
Use of Estimates
We prepare our financial statements in conformity with generally accepted accounting principles, which require us to make estimates and assumptions that affect the amounts reported in the financial statements.  Actual results could differ from those estimates. Our estimates and assumptions are reviewed periodically, and the effects of changes, if any, are reflected in the Consolidated Statements of Operations in the period that they are determined.
Contract Estimates
For contracts where revenue is recognized over time, we recognize changes in estimated contract revenues, costs and profits using the cumulative catch-up method of accounting.  This method recognizes the cumulative effect of changes on current and prior periods with the impact of the change from inception-to-date recorded in the current period.  Anticipated losses on contracts are recognized in full in the period in which the losses become probable and estimable.  
In the first quarter of 2021 and 2020, our cumulative catch-up adjustments increased segment profit by $14 million and $2 million, respectively, and net income by $11 million and $1 million, respectively ($0.05 and $0.01 per diluted share, respectively). In the first quarter of 2021 and 2020, we recognized revenues from performance obligations satisfied in prior periods of $18 million and $4 million, which related to changes in profit booking rates that impacted revenue. In the first quarter of 2021 and 2020, gross favorable adjustments totaled $36 million and $27 million, respectively, and the gross unfavorable adjustments totaled $22 million and $25 million, respectively.
v3.21.1
Business Dispositions
 3 Months Ended
Apr. 03, 2021
Business Combinations [Abstract]  
Business Dispositions Business DispositionOn January 25, 2021, we completed the sale of TRU Simulation + Training Canada Inc. within our Textron Systems segment for net cash proceeds of $39 million and recorded an after-tax gain of $15 million.
v3.21.1
Accounts Receivable and Finance Receivables
 3 Months Ended
Apr. 03, 2021
Receivables [Abstract]  
Accounts Receivable and Finance Receivables Accounts Receivable and Finance Receivables
Accounts Receivable
Accounts receivable is composed of the following:
(In millions)April 3,
2021		January 2,
2021
Commercial$732 $668 
U.S. Government contracts184 155 
916 823 
Allowance for credit losses(33)(36)
Total accounts receivable, net$883 $787 
Finance Receivables
Finance receivables are presented in the following table:
(In millions)April 3,
2021		January 2,
2021
Finance receivables$705 $779 
Allowance for credit losses(33)(35)
Total finance receivables, net$672 $744 
Finance Receivable Portfolio Quality
We internally assess the quality of our finance receivables based on a number of key credit quality indicators and statistics such as delinquency, loan balance to estimated collateral value and the financial strength of individual borrowers and guarantors.  Because many of these indicators are difficult to apply across an entire class of receivables, we evaluate individual loans on a quarterly basis and classify these loans into three categories based on the key credit quality indicators for the individual loan.  These three categories are performing, watchlist and nonaccrual.
We classify finance receivables as nonaccrual if credit quality indicators suggest full collection of principal and interest is doubtful. In addition, we automatically classify accounts as nonaccrual once they are contractually delinquent by more than three months unless collection of principal and interest is not doubtful. Accounts are classified as watchlist when credit quality indicators have deteriorated as compared with typical underwriting criteria, and we believe collection of full principal and interest is probable but not certain. All other finance receivables that do not meet the watchlist or nonaccrual categories are classified as performing.
We measure delinquency based on the contractual payment terms of our finance receivables.  In determining the delinquency aging category of an account, any/all principal and interest received is applied to the most past-due principal and/or interest amounts due. If a significant portion of the contractually due payment is delinquent, the entire finance receivable balance is reported in accordance with the most past-due delinquency aging category.
Since the first quarter of 2020, the Finance segment has worked with certain customers impacted by the pandemic to provide payment relief through loan modifications. The types of temporary payment relief we offered to these customers included delays in the timing of required principal payments, deferrals of interest payments and/or interest-only payments. For loan modifications that cover payment-relief periods in excess of six months, even if the loan was previously current, the loan is deemed a troubled debt restructuring and considered impaired. These impaired loans are classified as either nonaccrual or watchlist based on a review of the credit quality indicators as discussed above.
During the first quarter of 2021, we modified finance receivable contracts for 12 customers with an outstanding balance at April 3, 2021 totaling $29 million, of which $25 million was categorized as troubled debt restructurings. Due to the nature of these restructurings, the financial effects were not significant. We had four customer defaults related to finance receivables previously modified as a troubled debt restructuring that had an insignificant outstanding balance. We believe our allowance for credit losses adequately covers our exposure on these loans as our estimated collateral values largely exceed the outstanding loan amounts.
Finance receivables categorized based on the credit quality indicators and by the delinquency aging category are summarized as follows:
(Dollars in millions)April 3,
2021		January 2,
2021
Performing$591$612
Watchlist274
Nonaccrual11293
Nonaccrual as a percentage of finance receivables15.89%11.94%
Current and less than 31 days past due$676$738
31-60 days past due312
61-90 days past due611
Over 90 days past due2018
60+ days contractual delinquency as a percentage of finance receivables3.69%3.72%
At April 3, 2021, 27% of our performing finance receivables were originated since the beginning of 2020 and 33% were originated from 2017 to 2019. For finance receivables categorized as nonaccrual, 68% were originated from 2017 to 2019.
On a quarterly basis, we evaluate individual larger balance accounts for impairment. A finance receivable is considered impaired when it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement based on our review of the credit quality indicators described above. Impaired finance receivables include both nonaccrual accounts and accounts for which full collection of principal and interest remains probable, but the account’s original terms have been, or are expected to be, significantly modified. If the modification specifies an interest rate equal to or greater than a market rate for a finance receivable with comparable risk, the account is not considered impaired in years subsequent to the modification.
A summary of finance receivables and the allowance for credit losses, based on the results of our impairment evaluation, is provided below. The finance receivables included in this table specifically exclude leveraged leases in accordance with U.S. generally accepted accounting principles.
(In millions)April 3,
2021		January 2,
2021
Finance receivables evaluated collectively$498 $521 
Finance receivables evaluated individually113 163 
Allowance for credit losses based on collective evaluation26 28 
Allowance for credit losses based on individual evaluation7 7 
Impaired finance receivables with specific allowance for losses$42 $46 
Impaired finance receivables with no specific allowance for losses71 117 
Unpaid principal balance of impaired finance receivables122 175 
Allowance for credit losses on impaired finance receivables7 7 
Average recorded investment of impaired finance receivables138 126 
v3.21.1
Inventories
 3 Months Ended
Apr. 03, 2021
Inventory Disclosure [Abstract]  
Inventories Inventories
Inventories are composed of the following:
(In millions)April 3,
2021		January 2,
2021
Finished goods$1,222 $1,228 
Work in process1,663 1,455 
Raw materials and components820 830 
Total inventories$3,705 $3,513 
v3.21.1
Warranty Liability
 3 Months Ended
Apr. 03, 2021
Payables and Accruals [Abstract]  
Warranty Liability Warranty Liability
Changes in our warranty liability are as follows:
Three Months Ended
(In millions)April 3,
2021		April 4,
2020
Beginning of period$119 $141 
Provision14 13 
Settlements(20)(19)
Adjustments*3 (2)
End of period$116 $133 
* Adjustments include changes to prior year estimates, new issues on prior year sales and currency translation adjustments.
v3.21.1
Leases
 3 Months Ended
Apr. 03, 2021
Leases [Abstract]  
Leases Leases
We primarily lease certain manufacturing plants, offices, warehouses, training and service centers at various locations worldwide. Our operating leases have remaining lease terms up to 28 years, which include options to extend the lease term for periods up to 25 years when it is reasonably certain the option will be exercised. In the first quarter of 2021 and 2020, operating lease cost totaled $16 million and $15 million, respectively. Cash paid for operating leases totaled $16 million and $15 million in the first quarter of 2021 and 2020, respectively, which is classified in cash flows from operating activities. Noncash transactions totaled $45 million and $3 million in the first quarter of 2021 and 2020, respectively, reflecting the recognition of operating lease assets and liabilities for new or extended leases. Variable and short-term lease costs were not significant.
Balance sheet and other information related to our operating leases is as follows:
(Dollars in millions)April 3,
2021		January 2,
2021
Other assets$384$349
Other current liabilities5447
Other liabilities336306
Weighted-average remaining lease term (in years)10.911.6
Weighted-average discount rate3.52%4.17%
At April 3, 2021, maturities of our operating lease liabilities on an undiscounted basis totaled $50 million for the remainder of 2021, $63 million for 2022, $54 million for 2023, $45 million for 2024, $41 million for 2025 and $240 million thereafter.
v3.21.1
Derivative Instruments and Fair Value Measurements
 3 Months Ended
Apr. 03, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments and Fair Value Measurements Derivative Instruments and Fair Value Measurements
We measure fair value at the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.  We prioritize the assumptions that market participants would use in pricing the asset or liability into a three-tier fair value hierarchy.  This fair value hierarchy gives the highest priority (Level 1) to quoted prices in active markets for identical assets or liabilities and the lowest priority (Level 3) to unobservable inputs in which little or no market data exist, requiring companies to develop their own assumptions.  Observable inputs that do not meet the criteria of Level 1, which include quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets and liabilities in markets that are not active, are categorized as Level 2.  Level 3 inputs are those that reflect our estimates about the assumptions market participants would use in pricing the asset or liability based on the best information available in the circumstances.  Valuation techniques for assets and liabilities measured using Level 3 inputs may include methodologies such as the market approach, the income approach or the cost approach and may use unobservable inputs such as projections, estimates and management’s interpretation of current market data.  These unobservable inputs are utilized only to the extent that observable inputs are not available or cost effective to obtain.
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
We manufacture and sell our products in a number of countries throughout the world, and, therefore, we are exposed to movements in foreign currency exchange rates.  We primarily utilize foreign currency exchange contracts with maturities of no more than three years to manage this volatility.  These contracts qualify as cash flow hedges and are intended to offset the effect of exchange rate fluctuations on forecasted sales, inventory purchases and overhead expenses. Net gains and losses recognized in earnings and Accumulated other comprehensive loss on cash flow hedges, including gains and losses related to hedge ineffectiveness, were not significant in the periods presented.
Our foreign currency exchange contracts are measured at fair value using the market method valuation technique.  The inputs to this technique utilize current foreign currency exchange forward market rates published by third-party leading financial news and data providers. These are observable data that represent the rates that the financial institution uses for contracts entered into at that date; however, they are not based on actual transactions, so they are classified as Level 2.  At April 3, 2021 and January 2, 2021, we had foreign currency exchange contracts with notional amounts upon which the contracts were based of $423 million and $318 million, respectively. At April 3, 2021, the fair value amounts of our foreign currency exchange contracts were a $9 million asset and a $1 million liability. At January 2, 2021, the fair value amounts of our foreign currency exchange contracts were a $5 million asset and a $2 million liability.
Our Finance group enters into interest rate swap agreements to mitigate exposure to fluctuations in interest rates. By using these contracts, we are able to convert floating-rate cash flows to fixed-rate cash flows. These agreements are designated as cash flow hedges. At April 3, 2021 and January 2, 2021, we had one swap agreement that matures in February 2022 with a notional amount of $289 million and $294 million, respectively, and a fair value of a $3 million and $4 million liability, respectively.
Assets and Liabilities Not Recorded at Fair Value
The carrying value and estimated fair value of our financial instruments that are not reflected in the financial statements at fair value are as follows:
April 3, 2021January 2, 2021
CarryingEstimatedCarryingEstimated
(In millions)ValueFair ValueValueFair Value
Manufacturing group
Debt, excluding leases$(3,438)$(3,615)$(3,690)$(3,986)
Finance group
Finance receivables, excluding leases482 525 549 599 
Debt(653)(599)(662)(587)
Fair value for the Manufacturing group debt is determined using market observable data for similar transactions (Level 2).  The fair value for the Finance group debt was determined primarily based on discounted cash flow analyses using observable market inputs from debt with similar duration, subordination and credit default expectations (Level 2). Fair value estimates for finance receivables were determined based on internally developed discounted cash flow models primarily utilizing significant unobservable inputs (Level 3), which include estimates of the rate of return, financing cost, capital structure and/or discount rate expectations of current market participants combined with estimated loan cash flows based on credit losses, payment rates and expectations of borrowers’ ability to make payments on a timely basis.
v3.21.1
Shareholders' Equity
 3 Months Ended
Apr. 03, 2021
Equity [Abstract]  
Shareholders' Equity Shareholders’ Equity
A reconciliation of Shareholders’ equity is presented below:
(In millions)Common
Stock		Capital
Surplus		Treasury
Stock		Retained
Earnings		Accumulated
Other
Comprehensive
Loss		Total
Shareholders'
Equity
Three months ended April 3, 2021
Beginning of period$29 $1,785 $(203)$5,973 $(1,739)$5,845 
Net income— — — 171 — 171 
Other comprehensive income— — — — 16 16 
Share-based compensation activity— 60 — — — 60 
Dividends declared— — — (5)— (5)
Purchases of common stock— — (91)— — (91)
End of period$29 $1,845 $(294)$6,139 $(1,723)$5,996 
Three months ended April 4, 2020
Beginning of period$29 $1,674 $(20)$5,682 $(1,847)$5,518 
Net income— — — 50 — 50 
Other comprehensive loss— — — — (12)(12)
Share-based compensation activity— 37 — — — 37 
Dividends declared— — — (5)— (5)
Purchases of common stock— — (54)— — (54)
End of period$29 $1,711 $(74)$5,727 $(1,859)$5,534 
Dividends per share of common stock were $0.02 for both the first quarter of 2021 and 2020.
Earnings Per Share
We calculate basic and diluted earnings per share (EPS) based on net income, which approximates income available to common shareholders for each period.  Basic EPS is calculated using the two-class method, which includes the weighted-average number of common shares outstanding during the period and restricted stock units to be paid in stock that are deemed participating securities as they provide nonforfeitable rights to dividends. Diluted EPS considers the dilutive effect of all potential future common stock, including stock options.  
The weighted-average shares outstanding for basic and diluted EPS are as follows:
Three Months Ended
(In thousands)April 3,
2021		April 4,
2020
Basic weighted-average shares outstanding227,009 228,311 
Dilutive effect of stock options1,275 616 
Diluted weighted-average shares outstanding228,284 228,927 
Stock options to purchase 4.3 million and 7.5 million shares of common stock were excluded from the calculation of diluted weighted-average shares outstanding for the first quarter of 2021 and 2020, respectively, as their effect would have been anti-dilutive.
Accumulated Other Comprehensive Loss and Other Comprehensive Income (Loss)
The components of Accumulated other comprehensive loss are presented below:
(In millions)Pension and
Postretirement
Benefits
Adjustments		Foreign
Currency
Translation
Adjustments		Deferred
Gain (Losses)
on Hedge
Contracts		Accumulated
Other
Comprehensive
Loss
Balance at January 2, 2021$(1,780)$42 $(1)$(1,739)
Other comprehensive loss before reclassifications— (32)4 (28)
Reclassified from Accumulated other comprehensive loss30 14 — 44 
Balance at April 3, 2021$(1,750)$24 $3 $(1,723)
Balance at January 4, 2020$(1,811)$(36)$— $(1,847)
Other comprehensive loss before reclassifications— (40)(8)(48)
Reclassified from Accumulated other comprehensive loss37 — (1)36 
Balance at April 4, 2020$(1,774)$(76)$(9)$(1,859)

The before and after-tax components of Other comprehensive income (loss) are presented below:
April 3, 2021April 4, 2020
(In millions)Pre-Tax
Amount		Tax
(Expense)
Benefit		After-tax
Amount		Pre-Tax
Amount		Tax
(Expense)
Benefit		After-tax
Amount
Three Months Ended
Pension and postretirement benefits adjustments:
Amortization of net actuarial loss*$38 $(9)$29 $46 $(10)$36 
Amortization of prior service cost*2 (1)1 2 (1)1 
Pension and postretirement benefits adjustments, net40 (10)30 48 (11)37 
Foreign currency translation adjustments:
Foreign currency translation adjustments(32)— (32)(37)(3)(40)
Business disposition14 — 14 — — — 
Foreign currency translation adjustments, net(18)— (18)(37)(3)(40)
Deferred gains (losses) on hedge contracts:
Current deferrals5 (1)4 (9)1 (8)
Reclassification adjustments— — — (1)— (1)
Deferred gains (losses) on hedge contracts, net5 (1)4 (10)1 (9)
Total$27 $(11)$16 $1 $(13)$(12)
*These components of other comprehensive income (loss) are included in the computation of net periodic pension cost (credit). See Note 16 of our 2020 Annual Report on Form 10-K for additional information.
v3.21.1
Segment Information
 3 Months Ended
Apr. 03, 2021
Segment Reporting [Abstract]  
Segment Information Segment Information
We operate in, and report financial information for, the following five business segments: Textron Aviation, Bell, Textron Systems, Industrial and Finance. Segment profit is an important measure used for evaluating performance and for decision-making purposes. Segment profit for the manufacturing segments excludes interest expense, certain corporate expenses, gains/losses on major business dispositions and special charges. The measurement for the Finance segment includes interest income and expense along with intercompany interest income and expense.
Our revenues by segment, along with a reconciliation of segment profit to income before income taxes, are included in the table below:
Three Months Ended
(In millions)April 3,
2021		April 4,
2020
Revenues
Textron Aviation$865 $872 
Bell846 823 
Textron Systems328 328 
Industrial825 740 
Finance15 14 
Total revenues$2,879 $2,777 
Segment Profit
Textron Aviation$47 $3 
Bell105 115 
Textron Systems51 26 
Industrial47 9 
Finance6 3 
Segment profit256 156 
Corporate expenses and other, net(40)(14)
Interest expense, net for Manufacturing group(35)(34)
Special charges(6)(39)
Gain on business disposition15 — 
Income before income taxes$190 $69 
v3.21.1
Revenues
 3 Months Ended
Apr. 03, 2021
Revenue from Contract with Customer [Abstract]  
Revenues Revenues
Disaggregation of Revenues
Our revenues disaggregated by major product type are presented below:
Three Months Ended
(In millions)April 3,
2021		April 4,
2020
Aircraft$535 $515 
Aftermarket parts and services330 357 
Textron Aviation865 872 
Military aircraft and support programs577 620 
Commercial helicopters, parts and services269 203 
Bell846 823 
Air systems*123 136 
Land and sea systems*57 60 
Other148 132 
Textron Systems328 328 
Fuel systems and functional components497 465 
Specialized vehicles328 275 
Industrial825 740 
Finance15 14 
Total revenues$2,879 $2,777 
*At the beginning of 2021, Textron Systems began reporting under the Air Systems, Land and Sea Systems and Other product lines to reflect a reorganization and transfer of certain products. Prior period revenues have been reclassified to conform to current period presentation.
Our revenues for our segments by customer type and geographic location are presented below:
(In millions)Textron
Aviation		BellTextron
Systems		IndustrialFinanceTotal
Three months ended April 3, 2021
Customer type:
Commercial$846 $266 $58 $820 $15 $2,005 
U.S. Government19 580 270 5 — 874 
Total revenues$865 $846 $328 $825 $15 $2,879 
Geographic location:
United States$609 $616 $289 $378 $8 $1,900 
Europe84 36 10 236 — 366 
Asia and Australia76 79 16 94 2 267 
Other international96 115 13 117 5 346 
Total revenues$865 $846 $328 $825 $15 $2,879 
Three months ended April 4, 2020
Customer type:
Commercial$848 $198 $71 $739 $14 $1,870 
U.S. Government24 625 257 1 — 907 
Total revenues$872 $823 $328 $740 $14 $2,777 
Geographic location:
United States$597 $690 $286 $329 $6 $1,908 
Europe84 24 12 228 1 349 
Asia and Australia123 50 20 53 1 247 
Other international68 59 10 130 6 273 
Total revenues$872 $823 $328 $740 $14 $2,777 
Remaining Performance Obligations
Our remaining performance obligations, which is the equivalent of our backlog, represent the expected transaction price allocated to our contracts that we expect to recognize as revenues in future periods when we perform under the contracts.  These remaining obligations exclude unexercised contract options and potential orders under ordering-type contracts such as Indefinite Delivery, Indefinite Quantity contracts. At April 3, 2021, we had $9.6 billion in remaining performance obligations of which we expect to recognize revenues of approximately 73% through 2022, an additional 23% through 2024, and the balance thereafter.  
Contract Assets and Liabilities
Assets and liabilities related to our contracts with customers are reported on a contract-by-contract basis at the end of each reporting period. At April 3, 2021 and January 2, 2021, contract assets totaled $578 million and $561 million, respectively, and contract liabilities totaled $887 million and $842 million, respectively, reflecting timing differences between revenue recognized, billings and payments from customers. During the first quarter of 2021 and 2020, we recognized revenues of $278 million and $231 million, respectively, that were included in the contract liability balance at the beginning of each year.
v3.21.1
Share-Based Compensation
 3 Months Ended
Apr. 03, 2021
Share-based Payment Arrangement [Abstract]  
Share-Based Compensation Share-Based Compensation
Under our share-based compensation plan, we have authorization to provide awards to selected employees and non-employee directors in the form of stock options, restricted stock, restricted stock units, stock appreciation rights, performance stock, performance share units and other awards.  Compensation expense, or income in periods of share price depreciation, related to share-based compensation is included in net income as follows:
Three Months Ended
(In millions)April 3,
2021		April 4,
2020
Compensation expense (income)$55 $(13)
Income tax (benefit) expense(13)3 
Total net compensation expense (income) included in net income$42 $(10)
Compensation expense (income) included stock option expense of $12 million in the first quarter of 2021 and $10 million in the first quarter of 2020.
Stock Options
Options to purchase our shares have a maximum term of ten years and generally vest ratably over a three-year period. Stock option compensation cost is calculated under the fair value approach using the Black-Scholes option-pricing model to determine the fair value of options granted on the date of grant. The expected volatility used in this model is based on historical volatilities and implied volatilities from traded options on our common stock.  The expected term is based on historical option exercise data, which is adjusted to reflect any anticipated changes in expected behavior.
We grant options annually on the first day of March and the assumptions used in our option-pricing model for these grants and the weighted-average fair value for these options are as follows:
March 1, 2021March 1, 2020
Fair value of options at grant date$15.05$10.66
Dividend yield0.2%0.2%
Expected volatility33.6%29.3%
Risk-free interest rate0.7%1.1%
Expected term (in years)4.74.7
The stock option activity during the first quarter of 2021 is provided below:
(Options in thousands)Number of
Options		Weighted-
Average
Exercise Price
Outstanding at January 2, 20219,810 $44.03 
Granted1,480 51.56 
Exercised(812)(33.08)
Forfeited or expired(59)(45.91)
Outstanding at April 3, 202110,419 $45.94 
Exercisable at April 3, 20217,062 $45.54 
At April 3, 2021, our outstanding options had an aggregate intrinsic value of $117 million and a weighted-average remaining contractual life of 6.4 years.  Our exercisable options had an aggregate intrinsic value of $83 million and a weighted-average remaining contractual life of 5.1 years at April 3, 2021.  The total intrinsic value of options exercised during the first quarter of 2021 and 2020 was $15 million and $3 million, respectively.
Restricted Stock Units
We issue restricted stock units that include the right to receive dividend equivalents and are settled in both cash and stock. Beginning in 2020, new grants of restricted stock units will vest in full on the third anniversary of the grant date. Restricted stock units granted prior to 2020 vest one-third each in the third, fourth and fifth year following the year of the grant. The fair value of these units is based on the trading price of our common stock. For units payable in stock, we use the trading price on the grant date, while units payable in cash are remeasured using the price at each reporting period date.  The activity for restricted stock units payable in both stock and cash during the first quarter of 2021 is provided below:
Units Payable in StockUnits Payable in Cash
(Shares/Units in thousands)Number of
Shares		Weighted-
Average Grant
Date Fair Value		Number of
Units		Weighted-
Average Grant
Date Fair Value
Outstanding at January 2, 2021, nonvested583 $47.60 1,145 $48.53 
Granted124 51.56 333 51.56 
Vested(127)(46.14)(251)(46.42)
Forfeited— — (23)(48.33)
Outstanding at April 3, 2021, nonvested580 $48.77 1,204 $49.82 
The fair value of the restricted stock unit awards that vested and/or amounts paid under these awards is as follows:
Three Months Ended
(In millions)April 3,
2021		April 4,
2020
Fair value of awards vested$19 $17 
Cash paid13 11 
Performance Share Units
The activity for our performance share units during the first quarter of 2021 is as follows:
(Units in thousands)Number of
Units		Weighted-
Average Grant
Date Fair Value
Outstanding at January 2, 2021, nonvested514 $47.02 
Granted256 51.56 
Outstanding at April 3, 2021, nonvested770 $48.52 
Cash paid under these awards totaled $6 million and $7 million in the first quarter of 2021 and 2020, respectively.
v3.21.1
Retirement Plans
 3 Months Ended
Apr. 03, 2021
Retirement Benefits [Abstract]  
Retirement Plans Retirement Plans
We provide defined benefit pension plans and other postretirement benefits to eligible employees.  The components of net periodic benefit cost (credit) for these plans are as follows:
Three Months Ended
(In millions)April 3,
2021		April 4,
2020
Pension Benefits
Service cost$29 $26 
Interest cost63 73 
Expected return on plan assets(144)(144)
Amortization of net actuarial loss39 46 
Amortization of prior service cost3 3 
Net periodic benefit cost (credit)$(10)$4 
Postretirement Benefits Other Than Pensions
Service cost$1 $1 
Interest cost1 2 
Amortization of net actuarial loss(1)— 
Amortization of prior service credit(1)(1)
Net periodic benefit cost$— $2 
v3.21.1
Special Charges
 3 Months Ended
Apr. 03, 2021
Special Charges [Abstract]  
Special Charges Special Charges
First Quarter 2021 Charges
In the first quarter of 2021, we recorded special charges of $6 million related to a restructuring plan. This plan was initiated in the second quarter of 2020 to reduce operating expenses through headcount reductions, facility consolidations and other actions in response to the economic challenges and uncertainty resulting from the COVID-19 pandemic, and was expanded in the third quarter of 2020 to include additional headcount reductions and facility consolidations. Since inception of the plan, we have incurred total charges of $114 million, which included severance costs of $73 million for the termination of approximately 2,700 employees, asset impairment charges of $24 million and contract terminations and other costs of $17 million. Of these amounts, $40 million was incurred at Industrial, $37 million at Textron Systems, $33 million at Textron Aviation, and $4 million at Corporate. We expect to incur additional contract termination costs and other charges in the range of $14 million to $24 million, primarily in the Industrial segment, and expect the plan to be substantially completed in the third quarter of 2021.
First Quarter 2020 Charges
In the first quarter of 2020, we recognized $39 million of intangible asset impairment charges at the Textron Aviation and Industrial segments. Due to the impact of the COVID-19 pandemic, we experienced decreased demand for our products and services as our customers delayed or ceased orders due to the environment of economic uncertainty. In light of these conditions, Textron Aviation had temporarily shut down most aircraft production, including the King Air turboprop and Beechcraft piston product lines, and had instituted employee furloughs. Based on these events, we performed an interim impairment test of the indefinite-lived Beechcraft and King Air trade name intangible assets and recorded an impairment charge of $32 million.  
Restructuring Reserve
Our restructuring reserve activity is summarized below:
Contract
SeveranceTerminations
(In millions)Costsand OtherTotal
Balance at January 2, 2021$43 $9 $52 
Provision for 2020 COVID-19 restructuring plan— 4 4 
Cash paid(13)(4)(17)
Foreign currency translation(1)— (1)
Balance at April 3, 2021$29 $9 $38 
The majority of the remaining cash outlays of $38 million is expected to be paid in 2021. Severance costs generally are paid on a lump-sum basis and include outplacement costs, which are paid in accordance with normal payment terms.
v3.21.1
Income Taxes
 3 Months Ended
Apr. 03, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income TaxesOur effective tax rate for the first quarter of 2021 and 2020 was 10.0% and 27.5%, respectively. In the first quarter of 2021, the effective tax rate was lower than the U.S. federal statutory rate of 21%, primarily due to a $12 million benefit recognized for additional research and development credits related to prior years. In the first quarter of 2020, the effective tax rate was higher than the U.S. federal statutory rate of 21%, primarily due to a $10 million tax provision established related to a decision to dividend cash back from select non-U.S. jurisdictions to the U.S. in 2020.
v3.21.1
Commitments and Contingencies
 3 Months Ended
Apr. 03, 2021
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and ContingenciesWe are subject to legal proceedings and other claims arising out of the conduct of our business, including proceedings and claims relating to commercial and financial transactions; government contracts; alleged lack of compliance with applicable laws and regulations; production partners; product liability; patent and trademark infringement; employment disputes; and environmental, safety and health matters. Some of these legal proceedings and claims seek damages, fines or penalties in substantial amounts or remediation of environmental contamination. As a government contractor, we are subject to audits, reviews and investigations to determine whether our operations are being conducted in accordance with applicable regulatory requirements. Under federal government procurement regulations, certain claims brought by the U.S. Government could result in our suspension or debarment from U.S. Government contracting for a period of time. On the basis of information presently available, we do not believe that existing proceedings and claims will have a material effect on our financial position or results of operations.
v3.21.1
Basis of Presenation (Policies)
 3 Months Ended
Apr. 03, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Use of Estimates
Use of Estimates
We prepare our financial statements in conformity with generally accepted accounting principles, which require us to make estimates and assumptions that affect the amounts reported in the financial statements.  Actual results could differ from those estimates. Our estimates and assumptions are reviewed periodically, and the effects of changes, if any, are reflected in the Consolidated Statements of Operations in the period that they are determined.
v3.21.1
Accounts Receivable and Finance Receivables (Tables)
 3 Months Ended
Apr. 03, 2021
Receivables [Abstract]  
Accounts Receivable
Accounts receivable is composed of the following:
(In millions)April 3,
2021		January 2,
2021
Commercial$732 $668 
U.S. Government contracts184 155 
916 823 
Allowance for credit losses(33)(36)
Total accounts receivable, net$883 $787 
Finance Receivables
Finance receivables are presented in the following table:
(In millions)April 3,
2021		January 2,
2021
Finance receivables$705 $779 
Allowance for credit losses(33)(35)
Total finance receivables, net$672 $744 
Financing Receivables Categorized Based On Credit Quality Indicators
Finance receivables categorized based on the credit quality indicators and by the delinquency aging category are summarized as follows:
(Dollars in millions)April 3,
2021		January 2,
2021
Performing$591$612
Watchlist274
Nonaccrual11293
Nonaccrual as a percentage of finance receivables15.89%11.94%
Current and less than 31 days past due$676$738
31-60 days past due312
61-90 days past due611
Over 90 days past due2018
60+ days contractual delinquency as a percentage of finance receivables3.69%3.72%
Financing Receivable Credit Quality Indicators
Finance receivables categorized based on the credit quality indicators and by the delinquency aging category are summarized as follows:
(Dollars in millions)April 3,
2021		January 2,
2021
Performing$591$612
Watchlist274
Nonaccrual11293
Nonaccrual as a percentage of finance receivables15.89%11.94%
Current and less than 31 days past due$676$738
31-60 days past due312
61-90 days past due611
Over 90 days past due2018
60+ days contractual delinquency as a percentage of finance receivables3.69%3.72%
Finance Receivables and Allowance For Credit Losses Based on Impairment Evaluation
A summary of finance receivables and the allowance for credit losses, based on the results of our impairment evaluation, is provided below. The finance receivables included in this table specifically exclude leveraged leases in accordance with U.S. generally accepted accounting principles.
(In millions)April 3,
2021		January 2,
2021
Finance receivables evaluated collectively$498 $521 
Finance receivables evaluated individually113 163 
Allowance for credit losses based on collective evaluation26 28 
Allowance for credit losses based on individual evaluation7 7 
Impaired finance receivables with specific allowance for losses$42 $46 
Impaired finance receivables with no specific allowance for losses71 117 
Unpaid principal balance of impaired finance receivables122 175 
Allowance for credit losses on impaired finance receivables7 7 
Average recorded investment of impaired finance receivables138 126 
v3.21.1
Inventories (Tables)
 3 Months Ended
Apr. 03, 2021
Inventory Disclosure [Abstract]  
Inventories
Inventories are composed of the following:
(In millions)April 3,
2021		January 2,
2021
Finished goods$1,222 $1,228 
Work in process1,663 1,455 
Raw materials and components820 830 
Total inventories$3,705 $3,513 
v3.21.1
Warranty Liability (Tables)
 3 Months Ended
Apr. 03, 2021
Payables and Accruals [Abstract]  
Changes in warranty liability
Changes in our warranty liability are as follows:
Three Months Ended
(In millions)April 3,
2021		April 4,
2020
Beginning of period$119 $141 
Provision14 13 
Settlements(20)(19)
Adjustments*3 (2)
End of period$116 $133 
* Adjustments include changes to prior year estimates, new issues on prior year sales and currency translation adjustments.
v3.21.1
Leases (Tables)
 3 Months Ended
Apr. 03, 2021
Leases [Abstract]  
Schedule of Balance Sheet and Other Information
Balance sheet and other information related to our operating leases is as follows:
(Dollars in millions)April 3,
2021		January 2,
2021
Other assets$384$349
Other current liabilities5447
Other liabilities336306
Weighted-average remaining lease term (in years)10.911.6
Weighted-average discount rate3.52%4.17%
v3.21.1
Derivative Instruments and Fair Value Measurements (Tables)
 3 Months Ended
Apr. 03, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Carrying Value and Estimated and Fair Value of Financial Instruments
The carrying value and estimated fair value of our financial instruments that are not reflected in the financial statements at fair value are as follows:
April 3, 2021January 2, 2021
CarryingEstimatedCarryingEstimated
(In millions)ValueFair ValueValueFair Value
Manufacturing group
Debt, excluding leases$(3,438)$(3,615)$(3,690)$(3,986)
Finance group
Finance receivables, excluding leases482 525 549 599 
Debt(653)(599)(662)(587)
v3.21.1
Shareholders' Equity (Tables)
 3 Months Ended
Apr. 03, 2021
Equity [Abstract]  
Schedule of Shareholder's equity
A reconciliation of Shareholders’ equity is presented below:
(In millions)Common
Stock		Capital
Surplus		Treasury
Stock		Retained
Earnings		Accumulated
Other
Comprehensive
Loss		Total
Shareholders'
Equity
Three months ended April 3, 2021
Beginning of period$29 $1,785 $(203)$5,973 $(1,739)$5,845 
Net income— — — 171 — 171 
Other comprehensive income— — — — 16 16 
Share-based compensation activity— 60 — — — 60 
Dividends declared— — — (5)— (5)
Purchases of common stock— — (91)— — (91)
End of period$29 $1,845 $(294)$6,139 $(1,723)$5,996 
Three months ended April 4, 2020
Beginning of period$29 $1,674 $(20)$5,682 $(1,847)$5,518 
Net income— — — 50 — 50 
Other comprehensive loss— — — — (12)(12)
Share-based compensation activity— 37 — — — 37 
Dividends declared— — — (5)— (5)
Purchases of common stock— — (54)— — (54)
End of period$29 $1,711 $(74)$5,727 $(1,859)$5,534 
Schedule of Weighted-Average Shares Outstanding for Basic and Diluted EPS
The weighted-average shares outstanding for basic and diluted EPS are as follows:
Three Months Ended
(In thousands)April 3,
2021		April 4,
2020
Basic weighted-average shares outstanding227,009 228,311 
Dilutive effect of stock options1,275 616 
Diluted weighted-average shares outstanding228,284 228,927 
Schedule of Components of Accumulated Other Comprehensive Loss
The components of Accumulated other comprehensive loss are presented below:
(In millions)Pension and
Postretirement
Benefits
Adjustments		Foreign
Currency
Translation
Adjustments		Deferred
Gain (Losses)
on Hedge
Contracts		Accumulated
Other
Comprehensive
Loss
Balance at January 2, 2021$(1,780)$42 $(1)$(1,739)
Other comprehensive loss before reclassifications— (32)4 (28)
Reclassified from Accumulated other comprehensive loss30 14 — 44 
Balance at April 3, 2021$(1,750)$24 $3 $(1,723)
Balance at January 4, 2020$(1,811)$(36)$— $(1,847)
Other comprehensive loss before reclassifications— (40)(8)(48)
Reclassified from Accumulated other comprehensive loss37 — (1)36 
Balance at April 4, 2020$(1,774)$(76)$(9)$(1,859)
Schedule of Before and After-Tax Components of Other Comprehensive Income (Loss)
The before and after-tax components of Other comprehensive income (loss) are presented below:
April 3, 2021April 4, 2020
(In millions)Pre-Tax
Amount		Tax
(Expense)
Benefit		After-tax
Amount		Pre-Tax
Amount		Tax
(Expense)
Benefit		After-tax
Amount
Three Months Ended
Pension and postretirement benefits adjustments:
Amortization of net actuarial loss*$38 $(9)$29 $46 $(10)$36 
Amortization of prior service cost*2 (1)1 2 (1)1 
Pension and postretirement benefits adjustments, net40 (10)30 48 (11)37 
Foreign currency translation adjustments:
Foreign currency translation adjustments(32)— (32)(37)(3)(40)
Business disposition14 — 14 — — — 
Foreign currency translation adjustments, net(18)— (18)(37)(3)(40)
Deferred gains (losses) on hedge contracts:
Current deferrals5 (1)4 (9)1 (8)
Reclassification adjustments— — — (1)— (1)
Deferred gains (losses) on hedge contracts, net5 (1)4 (10)1 (9)
Total$27 $(11)$16 $1 $(13)$(12)
*These components of other comprehensive income (loss) are included in the computation of net periodic pension cost (credit). See Note 16 of our 2020 Annual Report on Form 10-K for additional information
v3.21.1
Segment Information (Tables)
 3 Months Ended
Apr. 03, 2021
Segment Reporting [Abstract]  
Revenues by Segment and Reconciliation of Segment Profit Income (Loss) Before Income Taxes
Our revenues by segment, along with a reconciliation of segment profit to income before income taxes, are included in the table below:
Three Months Ended
(In millions)April 3,
2021		April 4,
2020
Revenues
Textron Aviation$865 $872 
Bell846 823 
Textron Systems328 328 
Industrial825 740 
Finance15 14 
Total revenues$2,879 $2,777 
Segment Profit
Textron Aviation$47 $3 
Bell105 115 
Textron Systems51 26 
Industrial47 9 
Finance6 3 
Segment profit256 156 
Corporate expenses and other, net(40)(14)
Interest expense, net for Manufacturing group(35)(34)
Special charges(6)(39)
Gain on business disposition15 — 
Income before income taxes$190 $69 
v3.21.1
Revenues (Tables)
 3 Months Ended
Apr. 03, 2021
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue
Our revenues disaggregated by major product type are presented below:
Three Months Ended
(In millions)April 3,
2021		April 4,
2020
Aircraft$535 $515 
Aftermarket parts and services330 357 
Textron Aviation865 872 
Military aircraft and support programs577 620 
Commercial helicopters, parts and services269 203 
Bell846 823 
Air systems*123 136 
Land and sea systems*57 60 
Other148 132 
Textron Systems328 328 
Fuel systems and functional components497 465 
Specialized vehicles328 275 
Industrial825 740 
Finance15 14 
Total revenues$2,879 $2,777 
*At the beginning of 2021, Textron Systems began reporting under the Air Systems, Land and Sea Systems and Other product lines to reflect a reorganization and transfer of certain products. Prior period revenues have been reclassified to conform to current period presentation.
Our revenues for our segments by customer type and geographic location are presented below:
(In millions)Textron
Aviation		BellTextron
Systems		IndustrialFinanceTotal
Three months ended April 3, 2021
Customer type:
Commercial$846 $266 $58 $820 $15 $2,005 
U.S. Government19 580 270 5 — 874 
Total revenues$865 $846 $328 $825 $15 $2,879 
Geographic location:
United States$609 $616 $289 $378 $8 $1,900 
Europe84 36 10 236 — 366 
Asia and Australia76 79 16 94 2 267 
Other international96 115 13 117 5 346 
Total revenues$865 $846 $328 $825 $15 $2,879 
Three months ended April 4, 2020
Customer type:
Commercial$848 $198 $71 $739 $14 $1,870 
U.S. Government24 625 257 1 — 907 
Total revenues$872 $823 $328 $740 $14 $2,777 
Geographic location:
United States$597 $690 $286 $329 $6 $1,908 
Europe84 24 12 228 1 349 
Asia and Australia123 50 20 53 1 247 
Other international68 59 10 130 6 273 
Total revenues$872 $823 $328 $740 $14 $2,777 
v3.21.1
Share-Based Compensation (Tables)
 3 Months Ended
Apr. 03, 2021
Share-based Payment Arrangement [Abstract]  
Compensation expense included in net income Compensation expense, or income in periods of share price depreciation, related to share-based compensation is included in net income as follows:
Three Months Ended
(In millions)April 3,
2021		April 4,
2020
Compensation expense (income)$55 $(13)
Income tax (benefit) expense(13)3 
Total net compensation expense (income) included in net income$42 $(10)
Weighted-average fair value of stock options and assumptions used in option-pricing model
We grant options annually on the first day of March and the assumptions used in our option-pricing model for these grants and the weighted-average fair value for these options are as follows:
March 1, 2021March 1, 2020
Fair value of options at grant date$15.05$10.66
Dividend yield0.2%0.2%
Expected volatility33.6%29.3%
Risk-free interest rate0.7%1.1%
Expected term (in years)4.74.7
Stock option activity
The stock option activity during the first quarter of 2021 is provided below:
(Options in thousands)Number of
Options		Weighted-
Average
Exercise Price
Outstanding at January 2, 20219,810 $44.03 
Granted1,480 51.56 
Exercised(812)(33.08)
Forfeited or expired(59)(45.91)
Outstanding at April 3, 202110,419 $45.94 
Exercisable at April 3, 20217,062 $45.54 
Activity for Restricted Stock Units The activity for restricted stock units payable in both stock and cash during the first quarter of 2021 is provided below:
Units Payable in StockUnits Payable in Cash
(Shares/Units in thousands)Number of
Shares		Weighted-
Average Grant
Date Fair Value		Number of
Units		Weighted-
Average Grant
Date Fair Value
Outstanding at January 2, 2021, nonvested583 $47.60 1,145 $48.53 
Granted124 51.56 333 51.56 
Vested(127)(46.14)(251)(46.42)
Forfeited— — (23)(48.33)
Outstanding at April 3, 2021, nonvested580 $48.77 1,204 $49.82 
Fair value of awards vested and cash paid during respective periods
The fair value of the restricted stock unit awards that vested and/or amounts paid under these awards is as follows:
Three Months Ended
(In millions)April 3,
2021		April 4,
2020
Fair value of awards vested$19 $17 
Cash paid13 11 
Activity for Performance Share Units
The activity for our performance share units during the first quarter of 2021 is as follows:
(Units in thousands)Number of
Units		Weighted-
Average Grant
Date Fair Value
Outstanding at January 2, 2021, nonvested514 $47.02 
Granted256 51.56 
Outstanding at April 3, 2021, nonvested770 $48.52 
v3.21.1
Retirement Plans (Tables)
 3 Months Ended
Apr. 03, 2021
Retirement Benefits [Abstract]  
Schedule of Components of Net Periodic Benefit Cost (Credit) The components of net periodic benefit cost (credit) for these plans are as follows:
Three Months Ended
(In millions)April 3,
2021		April 4,
2020
Pension Benefits
Service cost$29 $26 
Interest cost63 73 
Expected return on plan assets(144)(144)
Amortization of net actuarial loss39 46 
Amortization of prior service cost3 3 
Net periodic benefit cost (credit)$(10)$4 
Postretirement Benefits Other Than Pensions
Service cost$1 $1 
Interest cost1 2 
Amortization of net actuarial loss(1)— 
Amortization of prior service credit(1)(1)
Net periodic benefit cost$— $2 
v3.21.1
Special Charges (Tables)
 3 Months Ended
Apr. 03, 2021
Special Charges [Abstract]  
Schedule of Restructuring Reserve Activity
Our restructuring reserve activity is summarized below:
Contract
SeveranceTerminations
(In millions)Costsand OtherTotal
Balance at January 2, 2021$43 $9 $52 
Provision for 2020 COVID-19 restructuring plan— 4 4 
Cash paid(13)(4)(17)
Foreign currency translation(1)— (1)
Balance at April 3, 2021$29 $9 $38 
v3.21.1
Basis of Presentation (Details)
$ / shares in Units, $ in Millions
 3 Months Ended
Apr. 03, 2021
USD ($)
borrowingGroup
$ / shares
Apr. 04, 2020
USD ($)
$ / shares
Number of borrowing groups | borrowingGroup 2  
Cumulative catch-up method    
Cumulative catch up adjustments $ 14 $ 2
Change in accounting estimate financial effect, increase in net income or decrease in net loss $ 11 $ 1
Change in accounting estimate financial effect increase in earnings per share diluted or decrease in earnings per share diluted | $ / shares $ 0.05 $ 0.01
Recognized revenue form performance obligations satisfied in prior periods $ 18 $ 4
Gross favorable adjustments 36 27
Gross unfavorable adjustments $ 22 $ 25
v3.21.1
Business Dispositions (Details) - USD ($)
$ in Millions
 3 Months Ended
Jan. 25, 2021
Apr. 03, 2021
Apr. 04, 2020
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]      
Net proceeds from business disposition   $ 39.0 $ 0.0
After tax gain   $ 15.0 $ 0.0
Disposition of businesses | TRU Non-US      
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]      
Net proceeds from business disposition $ 39.0    
After tax gain $ 15.0    
v3.21.1
Accounts Receivable and Finance Receivables - Accounts Receivable (Details) - Manufacturing group - USD ($)
$ in Millions
Apr. 03, 2021
Jan. 02, 2021
Accounts Receivable    
Accounts receivable, gross $ 916 $ 823
Allowance for credit losses (33) (36)
Total accounts receivable, net 883 787
Commercial    
Accounts Receivable    
Accounts receivable, gross 732 668
U.S. Government    
Accounts Receivable    
Accounts receivable, gross $ 184 $ 155
v3.21.1
Accounts Receivable and Finance Receivables - Finance Receivables (Details) - USD ($)
$ in Millions
Apr. 03, 2021
Jan. 02, 2021
Finance Receivables    
Finance receivables $ 705 $ 779
Allowance for credit losses (33) (35)
Total finance receivables, net $ 672 $ 744
v3.21.1
Accounts Receivable and Finance Receivables - Finance Receivables Portfolio Quality (Details)
$ in Millions
 3 Months Ended
Apr. 03, 2021
USD ($)
customer
Jan. 02, 2021
USD ($)
Finance receivables categorized based on the internally assigned credit quality    
Number of customers finance receivable contracts modified | customer 12  
Modified finance receivable outstanding balance $ 29  
Finance receivables categorized as troubled debt restructurings $ 25  
Customer default related to finance receivables previously modified as a troubled debt restructuring that had an insignificant outstanding balance | customer 4  
Finance receivables $ 705 $ 779
60+ days contractual delinquency as a percentage of finance receivables 3.69% 3.72%
Performing    
Finance receivables categorized based on the internally assigned credit quality    
Finance receivables $ 591 $ 612
Nonperforming    
Finance receivables categorized based on the internally assigned credit quality    
Payment relief period over which loan is considered impaired 6 months  
Current and less than 31 days past due    
Finance receivables categorized based on the internally assigned credit quality    
Finance receivables $ 676 738
31-60 days past due    
Finance receivables categorized based on the internally assigned credit quality    
Finance receivables 3 12
61-90 days past due    
Finance receivables categorized based on the internally assigned credit quality    
Finance receivables 6 11
Over 90 days past due    
Finance receivables categorized based on the internally assigned credit quality    
Finance receivables $ 20 18
Performing    
Finance receivables categorized based on the internally assigned credit quality    
Financing receivable originating since the beginning 2020 27.00%  
Financing receivable originating from 2017 to 2019 33.00%  
Watchlist | Nonperforming    
Finance receivables categorized based on the internally assigned credit quality    
Finance receivables $ 2 74
Nonaccrual | Nonperforming    
Finance receivables categorized based on the internally assigned credit quality    
Finance receivables $ 112 $ 93
Financing receivable originating from 2017 to 2019 68.00%  
Nonperforming    
Finance receivables categorized based on the internally assigned credit quality    
Nonaccrual as a percentage of finance receivables 15.89% 11.94%
Minimum | Nonperforming    
Finance receivables categorized based on the internally assigned credit quality    
Number of months of contractual delinquency to classify accounts as nonaccrual unless such collection is not doubtful 3 months  
v3.21.1
Accounts Receivable and Finance Receivables - Finance Receivables and Allowance for Losses Based on the Results of Impairment Evaluation (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Apr. 03, 2021
Jan. 02, 2021
Finance receivables    
Finance receivables evaluated collectively $ 498 $ 521
Finance receivables evaluated individually 113 163
Allowance for credit losses based on collective evaluation 26 28
Allowance for credit losses based on individual evaluation 7 7
Allowance for credit losses based on individual evaluation 42 46
Impaired finance receivables with no specific allowance for losses 71 117
Unpaid principal balance of impaired finance receivables 122 175
Allowance for credit losses on impaired finance receivables 7 7
Average recorded investment of impaired finance receivables $ 138 $ 126
v3.21.1
Inventories (Details) - USD ($)
$ in Millions
Apr. 03, 2021
Jan. 02, 2021
Inventories    
Finished goods $ 1,222 $ 1,228
Work in process 1,663 1,455
Raw materials and components 820 830
Total inventories $ 3,705 $ 3,513
v3.21.1
Warranty Liability (Details) - USD ($)
$ in Millions
 3 Months Ended
Apr. 03, 2021
Apr. 04, 2020
Changes in warranty liability    
Beginning of period $ 119 $ 141
Provision 14 13
Settlements (20) (19)
Adjustments 3 (2)
End of period $ 116 $ 133
v3.21.1
Leases - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended
Apr. 03, 2021
Apr. 04, 2020
Leases [Abstract]    
Remaining lease terms 28 years  
Operating lease - option to extend the lease, term 25 years  
Operating lease - option to extend true  
Operating lease cost $ 16 $ 15
Cash paid for operating lease liabilities 16 15
Noncash lease transactions $ 45 $ 3
v3.21.1
Leases - Balance Sheet and Other Information (Details) - USD ($)
$ in Millions
Apr. 03, 2021
Jan. 02, 2021
Operating leases:    
Other assets $ 384 $ 349
Other current liabilities 54 47
Other liabilities $ 336 $ 306
Weighted-average remaining lease term (in years)    
Weighted-average remaining lease term (in years) 10 years 10 months 24 days 11 years 7 months 6 days
Weighted-average discount rate    
Weighted-average discount rate 3.52% 4.17%
v3.21.1
Leases - Maturity of Lease Liabilities (Details)
$ in Millions
Apr. 03, 2021
USD ($)
Operating Leases  
2021 $ 50
2022 63
2023 54
2024 45
2025 41
Thereafter $ 240
v3.21.1
Derivative Instruments and Fair Value Measurements - Assets and Liabilities Recorded at Fair Value on a Recurring Basis (Details) - USD ($)
 3 Months Ended
Apr. 03, 2021
Jan. 02, 2021
Manufacturing group    
Fair value of derivative instruments    
Forward exchange contracts maximum maturity period 3 years  
Manufacturing group | Foreign currency exchange contracts | Cash Flow Hedging    
Fair value of derivative instruments    
Notional amounts $ 423,000,000 $ 318,000,000
Manufacturing group | Level 2 | Foreign currency exchange contracts | Cash Flow Hedging    
Fair value of derivative instruments    
Fair value of foreign currency exchange contracts, asset 9,000,000 5,000,000
Fair value of foreign currency exchange contracts, liability 1,000,000 2,000,000
Finance group | Interest Rate Swap | Cash Flow Hedging    
Fair value of derivative instruments    
Notional amounts 289,000,000 294,000,000
Fair value of foreign currency exchange contracts, liability $ 3,000,000 $ 4,000,000
v3.21.1
Derivative Instruments and Fair Value Measurements - Assets and Liabilities not Recorded at Fair Value (Details) - USD ($)
$ in Millions
Apr. 03, 2021
Jan. 02, 2021
Manufacturing group | Carrying Value    
Financial instruments not reflected at fair value    
Debt, excluding leases $ (3,438) $ (3,690)
Manufacturing group | Estimated Fair value    
Financial instruments not reflected at fair value    
Debt, excluding leases (3,615) (3,986)
Finance group | Carrying Value    
Financial instruments not reflected at fair value    
Finance receivables, excluding leases 482 549
Debt, carrying value (653) (662)
Finance group | Estimated Fair value    
Financial instruments not reflected at fair value    
Finance receivables, excluding leases 525 599
Debt, estimated fair value $ (599) $ (587)
v3.21.1
Shareholders' Equity - Reconciliation of Shareholders' Equity (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended
Apr. 03, 2021
Apr. 04, 2020
Increase (Decrease) in Stockholders' Equity    
Balance at beginning of period $ 5,845 $ 5,518
Net income (loss) 171 50
Other comprehensive income (loss) 16 (12)
Share-based compensation activity 60 37
Dividends declared (5) (5)
Purchases of common stock (91) (54)
Balance at end of period $ 5,996 $ 5,534
Dividends per share of common stock (in dollars per share) $ 0.02 $ 0.02
Common Stock    
Increase (Decrease) in Stockholders' Equity    
Balance at beginning of period $ 29 $ 29
Balance at end of period 29 29
Capital Surplus    
Increase (Decrease) in Stockholders' Equity    
Balance at beginning of period 1,785 1,674
Share-based compensation activity 60 37
Balance at end of period 1,845 1,711
Treasury Stock    
Increase (Decrease) in Stockholders' Equity    
Balance at beginning of period (203) (20)
Purchases of common stock (91) (54)
Balance at end of period (294) (74)
Retained Earnings    
Increase (Decrease) in Stockholders' Equity    
Balance at beginning of period 5,973 5,682
Net income (loss) 171 50
Dividends declared (5) (5)
Balance at end of period 6,139 5,727
Accumulated Other Comprehensive Loss    
Increase (Decrease) in Stockholders' Equity    
Balance at beginning of period (1,739) (1,847)
Other comprehensive income (loss) 16 (12)
Balance at end of period $ (1,723) $ (1,859)
v3.21.1
Shareholders' Equity - Earnings Per Share (Details) - shares
shares in Thousands
 3 Months Ended
Apr. 03, 2021
Apr. 04, 2020
Weighted-average shares outstanding for basic and diluted EPS    
Basic weighted-average shares outstanding (in shares) 227,009 228,311
Dilutive effect stock options (in shares) 1,275 616
Diluted weighted-average shares outstanding (in shares) 228,284 228,927
Stock options    
Weighted-average shares outstanding for basic and diluted EPS    
Anti-dilutive effect of weighted average shares (in shares) 4,300 7,500
v3.21.1
Shareholders' Equity - Accumulated Other Comprehensive Loss and Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Millions
 3 Months Ended
Apr. 03, 2021
Apr. 04, 2020
AOCI Attributable to Parent, Net of Tax [Roll Forward]    
Beginning of period $ (1,739)  
End of period (1,723)  
Accumulated Other Comprehensive Loss    
AOCI Attributable to Parent, Net of Tax [Roll Forward]    
Beginning of period (1,739) $ (1,847)
Other comprehensive loss before reclassifications (28) (48)
Reclassified from Accumulated other comprehensive loss 44 36
End of period (1,723) (1,859)
Pensions and Postretirement Benefits Adjustments    
AOCI Attributable to Parent, Net of Tax [Roll Forward]    
Beginning of period (1,780) (1,811)
Other comprehensive loss before reclassifications 0 0
Reclassified from Accumulated other comprehensive loss 30 37
End of period (1,750) (1,774)
Foreign Currency Translation Adjustments    
AOCI Attributable to Parent, Net of Tax [Roll Forward]    
Beginning of period 42 (36)
Other comprehensive loss before reclassifications (32) (40)
Reclassified from Accumulated other comprehensive loss 14 0
End of period 24 (76)
Deferred Gains (Losses) on Hedge Contracts    
AOCI Attributable to Parent, Net of Tax [Roll Forward]    
Beginning of period (1) 0
Other comprehensive loss before reclassifications 4 (8)
Reclassified from Accumulated other comprehensive loss 0 (1)
End of period $ 3 $ (9)
v3.21.1
Shareholders' Equity - Before and After Tax Components of Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Millions
 3 Months Ended
Apr. 03, 2021
Apr. 04, 2020
Pension and postretirement benefits adjustments, pre-tax:    
Amortization of net actuarial loss, pre-tax $ 38 $ 46
Amortization of prior service cost, pre-tax 2 2
Pension and postretirement benefits adjustments, net, pre-tax 40 48
Pension and postretirement benefits adjustments, tax:    
Amortization of net actuarial loss, tax (expense) benefit (9) (10)
Amortization of prior service cost, tax (expense) benefit (1) (1)
Pension and postretirement benefits adjustments, net, tax (expense) benefit (10) (11)
Pension and postretirement benefits adjustments, after-tax:    
Amortization of net actuarial loss, after tax 29 36
Amortization of prior period service cost, after tax 1 1
Pension and postretirement benefits adjustments, net, after-tax 30 37
Foreign currency translation adjustments, pre-tax:    
Foreign currency translation adjustments, pre-tax (32) (37)
Business disposition, Pre-Tax Amount 14 0
Foreign currency translation adjustments, net, pre-tax (18) (37)
Foreign currency translation adjustments, tax:    
Foreign currency translation adjustments, tax (expense) benefit 0 (3)
Business disposition, Tax (Expense) Benefit 0 0
Foreign currency translation adjustments, net, tax (expense) benefit 0 (3)
Foreign currency translation adjustments, after-tax:    
Foreign currency translation adjustments, after tax (32) (40)
Business disposition, After Tax Amount 14 0
Foreign currency translation adjustments, net of reclassifications (18) (40)
Deferred gains (losses) on hedge contracts, pre-tax:    
Current deferrals, pre-tax 5 (9)
Reclassification adjustments, pre-tax 0 (1)
Deferred gains (losses) on hedge contracts, net, pre-tax 5 (10)
Other comprehensive income (loss), pre-tax 27 1
Deferred gains (losses) on hedge contracts, tax:    
Current deferrals, tax (expense) benefit (1) 1
Reclassification adjustments, tax (expense) benefit 0 0
Deferred gains (losses) on hedge contracts, net, tax (expense) benefit (1) 1
Other comprehensive income (loss), tax (expense) benefit (11) (13)
Deferred gains (losses) on hedge contracts, after-tax:    
Current deferrals, after-tax 4 (8)
Reclassification adjustments, after-tax 0 1
Deferred gains (losses) on hedge contracts, net, after-tax 4 (9)
Other comprehensive income (loss) $ 16 $ (12)
v3.21.1
Segment Information - Operating and Reportable Segments (Details)
 3 Months Ended
Apr. 03, 2021
businessSegment
Operating and reportable business segments  
Number of business operating segments 5
Number of reportable business segments 5
v3.21.1
Segment Information - Revenue by Segment and Reconciliation of Segment Profit to Income Before Income Taxes (Details) - USD ($)
$ in Millions
 3 Months Ended
Apr. 03, 2021
Apr. 04, 2020
Revenues    
Total revenues $ 2,879 $ 2,777
Reconciliation of segment profit to income from continuing operations before income taxes    
Special charges (6) (39)
Gain on business disposition 15 0
Income before income taxes 190 69
Operating Segment    
Reconciliation of segment profit to income from continuing operations before income taxes    
Segment profit 256 156
Reconciling Items    
Reconciliation of segment profit to income from continuing operations before income taxes    
Corporate expenses and other, net (40) (14)
Special charges (6) (39)
Gain on business disposition 15 0
Textron Aviation    
Revenues    
Total revenues 865 872
Bell    
Revenues    
Total revenues 846 823
Textron Systems    
Revenues    
Total revenues 328 328
Industrial    
Revenues    
Total revenues 825 740
Finance    
Revenues    
Total revenues 15 14
Finance | Operating Segment    
Reconciliation of segment profit to income from continuing operations before income taxes    
Segment profit 6 3
Manufacturing group    
Reconciliation of segment profit to income from continuing operations before income taxes    
Gain on business disposition 15 0
Manufacturing group | Reconciling Items    
Reconciliation of segment profit to income from continuing operations before income taxes    
Interest expense, net for Manufacturing group (35) (34)
Manufacturing group | Textron Aviation | Operating Segment    
Revenues    
Total revenues 865 872
Reconciliation of segment profit to income from continuing operations before income taxes    
Segment profit 47 3
Manufacturing group | Bell | Operating Segment    
Revenues    
Total revenues 846 823
Reconciliation of segment profit to income from continuing operations before income taxes    
Segment profit 105 115
Manufacturing group | Textron Systems | Operating Segment    
Revenues    
Total revenues 328 328
Reconciliation of segment profit to income from continuing operations before income taxes    
Segment profit 51 26
Manufacturing group | Industrial | Operating Segment    
Revenues    
Total revenues 825 740
Reconciliation of segment profit to income from continuing operations before income taxes    
Segment profit 47 9
Finance group    
Reconciliation of segment profit to income from continuing operations before income taxes    
Gain on business disposition 0 0
Finance group | Finance | Operating Segment    
Revenues    
Total revenues $ 15 $ 14
v3.21.1
Revenues - Disaggregation of Revenue (Details) - USD ($)
$ in Millions
 3 Months Ended
Apr. 03, 2021
Apr. 04, 2020
Revenues    
Revenues $ 2,879 $ 2,777
United States    
Revenues    
Revenues 1,900 1,908
Europe    
Revenues    
Revenues 366 349
Asia and Australia    
Revenues    
Revenues 267 247
Other international    
Revenues    
Revenues 346 273
Commercial    
Revenues    
Revenues 2,005 1,870
U.S. Government    
Revenues    
Revenues 874 907
Textron Aviation    
Revenues    
Revenues 865 872
Textron Aviation | United States    
Revenues    
Revenues 609 597
Textron Aviation | Europe    
Revenues    
Revenues 84 84
Textron Aviation | Asia and Australia    
Revenues    
Revenues 76 123
Textron Aviation | Other international    
Revenues    
Revenues 96 68
Textron Aviation | Commercial    
Revenues    
Revenues 846 848
Textron Aviation | U.S. Government    
Revenues    
Revenues 19 24
Textron Aviation | Aircraft    
Revenues    
Revenues 535 515
Textron Aviation | Aftermarket parts and services    
Revenues    
Revenues 330 357
Bell    
Revenues    
Revenues 846 823
Bell | United States    
Revenues    
Revenues 616 690
Bell | Europe    
Revenues    
Revenues 36 24
Bell | Asia and Australia    
Revenues    
Revenues 79 50
Bell | Other international    
Revenues    
Revenues 115 59
Bell | Commercial    
Revenues    
Revenues 266 198
Bell | U.S. Government    
Revenues    
Revenues 580 625
Bell | Military aircraft and support programs    
Revenues    
Revenues 577 620
Bell | Commercial helicopters, parts and services    
Revenues    
Revenues 269 203
Textron Systems    
Revenues    
Revenues 328 328
Textron Systems | United States    
Revenues    
Revenues 289 286
Textron Systems | Europe    
Revenues    
Revenues 10 12
Textron Systems | Asia and Australia    
Revenues    
Revenues 16 20
Textron Systems | Other international    
Revenues    
Revenues 13 10
Textron Systems | Commercial    
Revenues    
Revenues 58 71
Textron Systems | U.S. Government    
Revenues    
Revenues 270 257
Textron Systems | Air systems    
Revenues    
Revenues 123 136
Textron Systems | Land and sea systems    
Revenues    
Revenues 57 60
Textron Systems | Other    
Revenues    
Revenues 148 132
Industrial    
Revenues    
Revenues 825 740
Industrial | United States    
Revenues    
Revenues 378 329
Industrial | Europe    
Revenues    
Revenues 236 228
Industrial | Asia and Australia    
Revenues    
Revenues 94 53
Industrial | Other international    
Revenues    
Revenues 117 130
Industrial | Commercial    
Revenues    
Revenues 820 739
Industrial | U.S. Government    
Revenues    
Revenues 5 1
Industrial | Fuel systems and functional components    
Revenues    
Revenues 497 465
Industrial | Specialized vehicles    
Revenues    
Revenues 328 275
Finance    
Revenues    
Revenues 15 14
Finance | United States    
Revenues    
Revenues 8 6
Finance | Europe    
Revenues    
Revenues 0 1
Finance | Asia and Australia    
Revenues    
Revenues 2 1
Finance | Other international    
Revenues    
Revenues 5 6
Finance | Commercial    
Revenues    
Revenues 15 14
Finance | U.S. Government    
Revenues    
Revenues $ 0 $ 0
v3.21.1
Revenues - Remaining Performance Obligations (Details)
$ in Billions
Apr. 03, 2021
USD ($)
Remaining Performance Obligation, Expected Timing of Satisfaction  
Remaining performance obligation $ 9.6
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-04  
Remaining Performance Obligation, Expected Timing of Satisfaction  
Remaining performance obligation, percent 73.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period 21 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01  
Remaining Performance Obligation, Expected Timing of Satisfaction  
Remaining performance obligation, percent 23.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period 24 months
v3.21.1
Revenues - Contract Assets and Liabilities (Details) - USD ($)
$ in Millions
 3 Months Ended
Apr. 03, 2021
Apr. 04, 2020
Jan. 02, 2021
Contract Assets and Liabilities      
Contract assets $ 578   $ 561
Contract liabilities 887   $ 842
Revenue recognized included in contract liabilities $ 278 $ 231  
v3.21.1
Share-Based Compensation - Compensation Expense (Details) - USD ($)
$ in Millions
 3 Months Ended
Apr. 03, 2021
Apr. 04, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Compensation expense (income) $ 55 $ (13)
Income tax (benefit) expense (13) 3
Total net compensation expense (income) included in net income 42 (10)
Stock options    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Compensation expense (income) $ 12 $ 10
v3.21.1
Share-Based Compensation - Stock Options (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
 3 Months Ended
Mar. 01, 2021
Mar. 01, 2020
Apr. 03, 2021
Apr. 04, 2020
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract]        
Aggregate intrinsic value of outstanding options     $ 117  
Weighted-average remaining contractual life of outstanding stock options     6 years 4 months 24 days  
Aggregate intrinsic value of exercisable options     $ 83  
Weighted-average remaining contractual life of exercisable options     5 years 1 month 6 days  
Aggregate intrinsic value of options exercised     $ 15 $ 3
Stock options        
Share-Based Compensation        
Maximum term of options     10 years  
Performance share units vesting period     3 years  
Weighted-average assumptions used in Black-Scholes option-pricing model        
Fair value of options at grant date (in dollars per share) $ 15.05 $ 10.66    
Dividend yield 0.20% 0.20%    
Expected volatility 33.60% 29.30%    
Risk-free interest rate 0.70% 1.10%    
Expected term (in years) 4 years 8 months 12 days 4 years 8 months 12 days    
Number of Options        
Outstanding at beginning of period (in shares)     9,810  
Granted (in shares)     1,480  
Exercised (in shares)     (812)  
Forfeited or expired (in shares)     (59)  
Outstanding at end of period (in shares)     10,419  
Exercisable at end of period (in shares)     7,062  
Weighted-Average Exercise Price        
Outstanding at beginning of period (in dollars per share)     $ 44.03  
Granted (in dollars per share)     51.56  
Exercised (in dollars per share)     (33.08)  
Forfeited or expired (in dollars per share)     (45.91)  
Outstanding at end of period (in dollars per share)     45.94  
Exercisable at end of period (in dollars per share)     $ 45.54  
v3.21.1
Share-Based Compensation - Restricted Stock Units (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
 3 Months Ended
Apr. 03, 2021
Apr. 04, 2020
Fair value    
Cash paid $ 6 $ 7
Units Payable in Stock    
Number of Units    
Outstanding at beginning of period, nonvested (in shares) 583  
Granted (in shares) 124  
Vested (in shares) (127)  
Forfeited (in shares) 0  
Outstanding at end of period, nonvested (in shares) 580  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]    
Outstanding at beginning of period, nonvested (in dollars per share) $ 47.60  
Granted (in dollars per share) 51.56  
Vested (in dollars per share) (46.14)  
Forfeited (in dollars per share) 0  
Outstanding at end of period, nonvested (in dollars per share) $ 48.77  
Units Payable in Cash    
Number of Units    
Outstanding at beginning of period, nonvested (in shares) 1,145  
Granted (in shares) 333  
Vested (in shares) (251)  
Forfeited (in shares) (23)  
Outstanding at end of period, nonvested (in shares) 1,204  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]    
Outstanding at beginning of period, nonvested (in dollars per share) $ 48.53  
Granted (in dollars per share) 51.56  
Vested (in dollars per share) (46.42)  
Forfeited (in dollars per share) (48.33)  
Outstanding at end of period, nonvested (in dollars per share) $ 49.82  
Restricted Stock Units    
Fair value    
Fair value of awards vested $ 19 17
Cash paid $ 13 $ 11
v3.21.1
Share-Based Compensation - Performance Share Units (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
 3 Months Ended
Apr. 03, 2021
Apr. 04, 2020
Fair value    
Cash paid $ 6 $ 7
Performance Share Units    
Number of Units    
Outstanding at beginning of period, nonvested (in shares) 514  
Granted (in shares) 256  
Outstanding at end of period, nonvested (in shares) 770  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]    
Outstanding at beginning of period, nonvested (in dollars per share) $ 47.02  
Granted (in dollars per share) 51.56  
Outstanding at end of period, nonvested (in dollars per share) $ 48.52  
v3.21.1
Retirement Plans (Details) - USD ($)
$ in Millions
 3 Months Ended
Apr. 03, 2021
Apr. 04, 2020
Pension Benefits    
Net periodic benefit cost (credit)    
Service cost $ 29 $ 26
Interest cost 63 73
Expected return on plan assets (144) (144)
Amortization of net actuarial loss 39 46
Amortization of prior service cost 3 3
Net periodic benefit cost (credit) (10) 4
Postretirement Benefits Other Than Pensions    
Net periodic benefit cost (credit)    
Service cost 1 1
Interest cost 1 2
Amortization of net actuarial loss (1) 0
Amortization of prior service cost (1) (1)
Net periodic benefit cost (credit) $ 0 $ 2
v3.21.1
Special Charges - First Quarter 2021 (Details)
$ in Millions
 3 Months Ended 15 Months Ended
Apr. 03, 2021
USD ($)
borrowingGroup
Apr. 04, 2020
USD ($)
Apr. 03, 2021
USD ($)
2020 Restructuring Plan      
Special charges $ 6 $ 39  
Asset impairments 3 $ 39  
2020 COVID-19 Restructuring Plan      
2020 Restructuring Plan      
Special charges 6   $ 114
Asset impairments $ 24    
Number of positions eliminated | borrowingGroup 2,700    
2020 COVID-19 Restructuring Plan | Corporate      
2020 Restructuring Plan      
Special charges $ 4    
2020 COVID-19 Restructuring Plan | Textron Systems | Operating Segment      
2020 Restructuring Plan      
Special charges 37    
2020 COVID-19 Restructuring Plan | Industrial | Operating Segment      
2020 Restructuring Plan      
Special charges 40    
2020 COVID-19 Restructuring Plan | Textron Aviation | Operating Segment      
2020 Restructuring Plan      
Special charges 33    
2020 COVID-19 Restructuring Plan | Severance Costs      
2020 Restructuring Plan      
Restructuring costs 73    
2020 COVID-19 Restructuring Plan | Contract Terminations and Others      
2020 Restructuring Plan      
Restructuring costs 17    
Minimum | 2020 COVID-19 Restructuring Plan      
2020 Restructuring Plan      
Total expected restructuring plan cost 14   14
Maximum | 2020 COVID-19 Restructuring Plan      
2020 Restructuring Plan      
Total expected restructuring plan cost $ 24   $ 24
v3.21.1
Special Charges - First Quarter 2020 (Details) - USD ($)
$ in Millions
 3 Months Ended
Apr. 03, 2021
Apr. 04, 2020
Special Charges    
Asset impairments $ 3 $ 39
Beechcraft and King Air trade name intangible assets    
Special Charges    
Impairment charge   32
Textron Aviation and Industrial segments    
Special Charges    
Asset impairments   $ 39
v3.21.1
Special Charges - Restructuring Reserve (Details)
$ in Millions
 3 Months Ended
Apr. 03, 2021
USD ($)
Restructuring Reserve [Roll Forward]  
Beginning balance $ 52
Provision for 2020 COVID-19 restructuring plan 4
Cash paid (17)
Foreign currency translation (1)
Ending balance 38
Severance Costs  
Restructuring Reserve [Roll Forward]  
Beginning balance 43
Provision for 2020 COVID-19 restructuring plan 0
Cash paid (13)
Foreign currency translation (1)
Ending balance 29
Contract Terminations and Others  
Restructuring Reserve [Roll Forward]  
Beginning balance 9
Provision for 2020 COVID-19 restructuring plan 4
Cash paid (4)
Foreign currency translation 0
Ending balance $ 9
v3.21.1
Income Taxes (Details) - USD ($)
$ in Millions
 3 Months Ended
Apr. 03, 2021
Apr. 04, 2020
Income Tax Disclosure [Abstract]    
Effective income tax rate 10.00% 27.50%
U.S. federal statutory income tax rate 21.00% 21.00%
Tax benefit recognized for additional research and development credits $ 12  
Tax provision related to dividend cash back from select non-U.S jurisdictions   $ 10